For a median-valued home in Eden Prairie, the city portion of its owner’s property tax bill for 2013 will be $18 less than it was in 2012.
That was determined as part of the Eden Prairie City Council’s approval of the final city budget and tax levy during its meeting Tuesday, Dec. 4.
The median-valued home was considered $312,600, according to the meeting’s presentation documents. The $18-decrease would bring the home’s annual property tax – for the city portion – to $1,087. This decrease for the median-valued home may be counter-intuitive to the .9 percent tax levy increase the city council approved Tuesday.
City Manager Rick Getschow said the decrease in most homeowner’s property taxes for the city portion is due to declining commercial and residential property values.
Approximately 80 percent of residential units in the city will see a decrease in their property tax bill, according to city Finance Manager Sue Kotchevar, while 19.5 percent will see an increase of 4.9 percent or lower. The remaining half percent will see more than a five percent increase, she said. Businesses may have a different story.
An apartment valued at $5 million could see an 11.6 percent increase on the property tax bill, and a $2 million commercial property would see a 7 percent increase.
Deficits are looking better for the city as well.
In recent years, the city has faced annual deficits as high as $1.5 million, Getschow said, but with an increase in development revenue and with revenue carried over from the 2012 budget, that has been reduced to approximately $300,000.
Including the city’s 2013 debt load and a capital improvement fund along with the $38.3 million general fund, the total 2013 budget was approved at $42.8 million. That’s a $1.3 million increase from last year, enough to maintain current city service levels, Kotchevar said.